FIGURE 23-5 -Refer to Figure 23-5.Suppose That an Increase in Government Purchases

Multiple Choice

FIGURE 23-5
-Refer to Figure 23-5.Suppose that an increase in government purchases by 50 causes the AD curve to shift to the right,as shown.The simple multiplier is ________ and the multiplier is ________.

A) 6; 1.2
B) 2.8; 1.2
C) 4; 1.2
D) 4; 2.8
E) 4; 3.2